The Radical

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Bitcoin Miners Seize Power Grids for AI Factories #

Tuesday, 2 June 2026 · words

Massive industrial server racks inside a repurposed power plant, harsh fluorescent lighting, thick black cables snaking across a concrete floor, high contrast black-and-white, wide-angle lens.
Massive industrial server racks inside a repurposed power plant, harsh fluorescent lighting, thick black cables snaking across a concrete floor, high contrast black-and-white, wide-angle lens.

MARA Holdings is moving to purchase the Long Ridge Energy power plant for $1.5 billion, signaling a terminal pivot from digital currency to the physical hosting of the Cognitive Enclosure. The deal includes the assumption of $785 million in debt and 1,600 acres of land intended to house a massive data center complex. According to Monitoring Analytics, the PJM Interconnection’s market monitor, the transaction should be blocked unless MARA pledges not to remove the 522-MW plant’s output from the public grid. The monitor warned that divertive energy flows to private data centers will destabilize public power markets. Simultaneously, Cango Inc. announced it is leveraging its global mining operations to develop an integrated AI compute platform, further tightening the corporate grip on regional electricity.

This paper's reading of these filings: the era of the '10x engineer' is dead, replaced by the thermodynamic dominance of the '1% user.' A new report from Cursor reveals that the top one percent of AI-active developers now produce 46 times more code than the median user. This explosion in automated output comes with systemic risks; a critical vulnerability discovered in the Starlette framework by X41 D-Sec now imperils millions of AI agents. Starlette, which handles 325 million downloads weekly, allows hackers to breach servers running the Model Context Protocol (MCP) and steal sensitive user data. While Ryan Cameron of Children’s Nebraska describes AI automation as an "operational imperative" that replaces nonclinical work, the reality is a massive transfer of risk. The tech monopolies are offloading the instability of their poisoned code onto the public while seceding from the shared electrical grid. Okta CEO Todd McKinnon confirmed that "agentic AI" is spiking demand for identity tools, even as the industry grapples with a software selloff driven by the inherent insecurity of 'vibe coding.'